Victoria’s debt has surged past $160bn as interest costs climb sharply, as the Allan government continues to borrow heavily to fund its infrastructure program. The Victorian government’s Mid-Year Financial Report shows net debt reached $160.9bn as of December 31, an increase of $10.1bn in six months, as borrowings expanded to finance the state’s major transport and infrastructure pipeline. Therising debt loadis also driving a sharp increase in the cost of servicing the state’s borrowings.